Aldrees’ capital hike to fund expansion plan; market share at 8.5%: CEO

Abdulelah Aldrees, CEO of Aldrees Petroleum and Transport Services Co. (Aldrees)

Aldrees Petroleum and Transport Services Co. (Aldrees)  intends to finance its expansion plan through its proposed capital hike. This is by increasing the number of stations, warehouses, or logistic services, said CEO Abdulelah Aldrees.

In a statement to Argaam, he added that the company's number of stations rose by 32 to reach 850 by the end of Q4 2023, compared to 818 stations in the previous quarter. He noted that Aldrees' market share reached almost 8.5%.

The CEO also attributed the year-on-year (YoY) rise in Q4 2023 sales to the stronger sales in the transport and petroleum segments, which reached SAR 136.9 million and SAR 3.81 billion, respectively, totaling SAR 3.95 billion.

He also expects Aldrees to show better performance quarter-on-quarter in Q1 2024.

The company earlier reported a net profit of SAR 280.8 million in 2023, up 16% from SAR 241.8 million in 2022. The fourth-quarter net profit amounted to nearly SAR 72.5 million.

On Jan. 25, Aldrees’ board of directors recommended a 33.33% capital increase, through distributing one bonus share for every three shares held, according to Argaam's data.